Chile’s state-owned copper producer Codelco increased its copper output by 22% in April 2025 compared to the same month last year, reaching an estimated 105,000 metric tons. Chairman Maximo Pacheco announced the figures at the company’s annual shareholders meeting, noting that the world’s largest copper miner is recovering from a 25-year production low and is targeting further output growth this year. He highlighted robust demand for copper, particularly in Asia, China, the United States, and Brazil, despite ongoing geopolitical tensions over access to critical minerals. “The market appears favorable, showing considerable strength in Asia, particularly in China, as well as in the United States and Brazil,” Pacheco said.
Pacheco also addressed the impact of U.S. tariffs imposed during the Trump administration, which led to an uptick in copper shipments to the United States. He noted that demand from China has increased further in the second quarter. As part of its growth strategy, Codelco is promoting the construction of a new copper smelter in Chile and is offering to supply 1.2 million tons of copper annually under a 20-30 year contract to attract investors. Talks with global partners are underway, with interest from companies in Asia and elsewhere as Codelco seeks to replace its Ventanas smelter, which closed in 2023.
Turning to lithium, Pacheco confirmed Codelco’s ambitions to expand into this sector, as Chile is the world’s second-largest producer of the battery metal. He expressed optimism about securing Chinese regulatory approval for a joint venture with SQM to increase lithium production at the Atacama salt flat. The partnership has already received clearance from Chilean and several international regulators, but China’s approval is still pending. Chile’s competition regulator recently approved the deal, which is a key part of the government’s plan to boost state oversight and production of lithium.
Codelco is also pursuing a new lithium project at the Maricunga salt flat, with a partner expected to be announced soon after receiving binding offers from global companies. This move is part of a broader strategy to expand Codelco’s presence in the lithium market and support Chile’s role in the global energy transition.
